Bank of Communications to raise RMB56.6 billion

There is absolutely no secret that I don't like Chinese banks as the economy slows and the real estate bubble is due to burst. What is really on banks' book will actually worth much less than what is appears because of non-performing loans. True, you can hide them and pretend that they are not non-performing loans (because they are Chinese banks), but that doesn't make banks stocks attractive just because they can lie.

Thus it should come as no surprise that Bank of Communication is raising RMB56.6 billion in both A and H shares, at RMB4.55 per A share and HK$5.63 per H share. Ministry of Finance, National Council for Social Security Fund, Shanghai Haiyan, Yunnan Hongta and HSBC will be among the subscribers. HSBC, for instance, will be paying HK$13.3 billion to buy 2.36 billion shares.

This is not the first time for a Chinese banks to ask for fresh capital in the past 2 years or so, and I believe that this will not be the last.